Atkore's Q1 2025: Navigating PVC Pricing, Capacity Challenges, and Import Competition
Tuesday, Feb 4, 2025 12:08 pm ET
4min read These are the key contradictions discussed in Atkore's latest 2025Q1 earnings call, specifically including: PVC pricing expectations, and the impact of new capacity and import competition on the market:
Volume and Pricing Challenges:
- Atkore reported organic volume decline of 5% in Q1 2025 compared to the previous year, when volume increased by over 13%.
- The decline was attributed to increased foreign and domestic competition, particularly in PVC and steel conduit products, and constraints in the utility-scale solar market.
Pricing and Market Dynamics:
- The company's average selling prices declined by 12% during the quarter, mainly due to PVC and steel conduit products.
- This decline was driven by the growing presence of imported PVC conduit from countries with limited quantity limitations and increased competition from new domestic entrants.
Financial Outlook Adjustment:
- Atkore updated its full-year 2025 outlook, expecting adjusted EBITDA in the range of $375 million to $425 million, down from the previous midpoint of $400 million.
- The adjustment was due to the greater-than-anticipated impact of increased competition and pricing pressure, especially in the PVC conduit market.
Sustainability Initiatives:
- The company released additional EPDs for core products, covering approximately half of its global sales, and published its fiscal year 2024 Sustainability Report.
- These initiatives align with Atkore's commitment to sustainability and transparency, and contribute to its ongoing efforts in environmental product declarations and sustainability goals.
ATKR Total Revenue year-on-year growth value, P/E(TTM)...
Volume and Pricing Challenges:
- Atkore reported organic volume decline of 5% in Q1 2025 compared to the previous year, when volume increased by over 13%.
- The decline was attributed to increased foreign and domestic competition, particularly in PVC and steel conduit products, and constraints in the utility-scale solar market.
Pricing and Market Dynamics:
- The company's average selling prices declined by 12% during the quarter, mainly due to PVC and steel conduit products.
- This decline was driven by the growing presence of imported PVC conduit from countries with limited quantity limitations and increased competition from new domestic entrants.
Financial Outlook Adjustment:
- Atkore updated its full-year 2025 outlook, expecting adjusted EBITDA in the range of $375 million to $425 million, down from the previous midpoint of $400 million.
- The adjustment was due to the greater-than-anticipated impact of increased competition and pricing pressure, especially in the PVC conduit market.
Sustainability Initiatives:
- The company released additional EPDs for core products, covering approximately half of its global sales, and published its fiscal year 2024 Sustainability Report.
- These initiatives align with Atkore's commitment to sustainability and transparency, and contribute to its ongoing efforts in environmental product declarations and sustainability goals.
